The Myth of the "Repurchase Program"

This is an old blog that's being "resurrected" because it's about a topic that comes up every year at this time of year.

As Club Intrawest/Embarc members grow older and their families mature (or their health changes) vacation needs are re-evaluated. For many, retirement brings the time and the opportunity to take more vacations at the Clubs. For others, a fixed income, poor health or a change in vacation preferences means that they would like to take advantage of the much-touted "repurchase" program offered by Intrawest for members who purchased their points before 2013 in order to get some money back for their points.

Here's what Embarc has posted on the FAQs in the HOA section of the Embarc website:

What is the Embarc Repurchase Program?

A Resort Points Repurchase program was created for long-term members who have owned their Embarc Resort Points for a minimum term of 5 years and who must have purchased their Resort Points from Intrawest directly on or before February 13, 2013 or from IROC U.S. or RVLP on or before June 30, 2013, whichever applies. This program offers eligible members the opportunity to have their membership repurchased. Members who apply within the calendar year are eligible to have their membership considered for repurchase in January of the following year on a first come first served basis. There is no guarantee that sufficient funds will be available in any given year to repurchase Resort Points of all Members who apply. The attached form can be completed by any Embarc member making a request to register their Resort Points for this repurchase scheme. Please click the question link above to access the Repurchase Request form for Embarc ownership. Fill out the form completely and send either via mail to The Landing, #326-375 Water Street Vancouver, British Columbia, Canada V6B 5C6, via fax to 604-682-7842, or via email to MembersInbox@diamondresorts.com. Once received, your member services team will submit your request for consideration.

What the Repurchase Program really is...

Sounds good doesn't it? A way to give back your membership to Embarc and a guarantee that you get money back in exchange. The statement above, which DRI has posted on the member site, may get you high on hope but it is short on details. In fact, there are many caveats*:

1) the dollar amount budgeted each year for the repurchase of member points is limited to 1% of the Developer's last year's sales

2) the developer will pay varying amounts based on these criteria:

• each qualified member who has owned all of his or her tendered resort points for less than 8 years will be paid a purchase price equal to the lesser of sixty (60%) percent of the original purchase price or forty (40%) of the lowest current sales price charged by any developer on a sale of the same number of resort points as at the date that the repurchase request was received by Embarc.